In the summer of 2008, the price of gasoline increased greatly. If the demand curve for gasoline did not shift, which of the following occurred?
A) Drivers received no consumer surplus after the price increase.
B) Consumer surplus increased if drivers drove less.
C) Consumer surplus decreased.
D) If consumers drove the same amount, they received less total benefit.
E) Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased.
C
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Other things remaining the same, which of the following is likely to cause a decrease in both the wage rate and the number of workers hired in a glass factory?
A) The introduction of labor-saving technology in the factory B) The introduction of labor-complementary technology in the factory C) A decrease in the population in the region where the factory is located D) An increase in the population in the region where the factory is located
In 2008, inflation exceeded expected inflation. In 2009, expected inflation exceeded inflation
Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009. A) less; less B) less; greater C) greater; less D) greater; greater
The longest contraction in American history occurred
A) during the 1870s. B) in the years right before World War I began. C) during the 1930s. D) during the 1970s.
In graph a, why does q1 move to q2?
a. When firms leave the market, the demand increases for the firms remaining, causing quantity to increase for each firm.
b. When firms leave the market, the price decreases for the firms remaining, causing quantity to increase for each firm.
c. When firms leave the market, the demand decreases for the firms remaining, causing quantity to decrease for each frim.
d. When firms leave the market, the price increases for the firms remaining, causing quantity to decrease for each firm.